Binance published a comprehensive listing framework Tuesday while blacklisting seven entities accused of falsely claiming to secure token listings for payment, offering up to $5 million for evidence of fraudulent activity.
The announcement arrives 10 days after the exchange suspended an employee for insider trading involving a memecoin promoted through official Binance channels.
The world's largest cryptocurrency exchange by trading volume said it will immediately disqualify and permanently blacklist projects discovered using third-party intermediaries for listing applications.
What Happened
Binance's new framework outlines a three-stage listing process spanning Alpha, Futures, and Spot markets while emphasizing that all applications must come directly from project founders or core team members.
The exchange blacklisted BitABC, Central Research, May/Dannie, Andrew Lee, Suki Yang, Fiona Lee, and Kenny Z after internal audits identified them as falsely representing Binance connections.
Officials confirmed no legitimate Binance representative solicits payment for listing services.
The exchange said it maintains a dedicated audit channel at [email protected] for reporting fraudulent brokers.
Binance warned that fraudsters often present themselves as employees or authorized listing agents while demanding fees in exchange for guaranteed outcomes.
The December 7 insider trading incident involved an employee who used the @BinanceFutures X account to promote a "year of the yellow fruit" memecoin less than one minute after its on-chain creation at 05:29 UTC.
The token surged 150% within the first hour before reaching a $6 million market cap and generating $16 million in trading volume.
Binance suspended the employee within 24 hours, contacted law enforcement, and paid $100,000 split among five whistleblowers who reported the activity.
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Why It Matters
The crackdown marks Binance's second insider trading case in 2025, raising questions about internal controls at an exchange handling approximately 55% of global cryptocurrency spot volume.
Co-CEO He Yi, who assumed leadership following Changpeng Zhao's departure, faces mounting pressure to restore confidence in listing practices.
The new framework requires comprehensive evaluation of product quality, user metrics, tokenomics, team backgrounds, and technical risks before projects advance through listing stages.
For tokens already trading elsewhere, Binance additionally assesses trading volume, valuation, liquidity, and token distribution.
The exchange emphasized projects demonstrating strong fundamentals may progress from Alpha featuring to Futures listings, with top performers potentially reaching Spot markets.
Binance's approach contrasts with Coinbase's 2022 scandal where a product manager and associates traded on listing information for over $1 million in gains, leading to Department of Justice charges and guilty pleas.
Industry data from Chainalysis shows insider abuses accounted for 8% of detected exchange vulnerabilities in 2024, with $120 million in illicit flows.
The listing transparency push coincides with heightened regulatory scrutiny across major markets as traditional financial institutions increase cryptocurrency infrastructure investments.
Binance said projects that proactively report middlemen attempting to charge fees will receive priority review consideration.
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